This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Are lump-sum taxes regressive or progressive? Is the deadweight loss of taxation the same for ... (Read 50 times)

JMatthes

  • Hero Member
  • *****
  • Posts: 578
on: Jun 29, 2018
Are lump-sum taxes regressive or progressive? Is the deadweight loss of taxation the same for different types of taxes?
 
  What will be an ideal response?

Question 2

Refer to Figure 5-2. The marginal benefit of the last unit produced is represented by the price
 
  A) Pa. B) Pb. C) Pc. D) Pf.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cclemon1

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 29, 2018
Answer to Question 1

Lump-sum taxes force the rich and the poor people to pay the same amount  and thus impose a higher tax rate on the poor. Therefore, they are an example of regressive taxes. Not all taxes lead to a deadweight loss. With lump-sum taxes, all citizens in an economy would pay the government the same amount regardless of their earnings or market demand. Since they will pay the same amount in a lump-sum tax no matter what they do, the lump-sum tax does not distort their decisions. Since such taxes do not distort decisions, they do not lead to a deadweight loss. There are very few examples of real world lump-sum taxes and so virtually all taxes that people actually pay do lead to deadweight losses.

Answer to Question 2

B


JMatthes

  • Member
  • Posts: 578
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Rates of water loss by two turtles and a tortoise indicate an inverse relationship between the dryne Rates of water loss by two turtles and a tortoise indicate an inverse relationship between the dryne
Glaucoma. (a) A buildup of pressure within the eye cavities, often caused by a blockage of vessels t Glaucoma. (a) A buildup of pressure within the eye cavities, often caused by a blockage of vessels t
Major causes of biodiversity loss Major causes of biodiversity loss
There has been a widespread loss of glacier mass globally There has been a widespread loss of glacier mass globally
Progressive Effects of Alcohol Progressive Effects of Alcohol
Loud Music and Hearing Loss Loud Music and Hearing Loss
Video: Cellular Respiration & Glucose Mobilization (Glucose transport & Phosphorylation of Glucose)

For a complete list of videos, visit our video library